Madoff investors may get back some money in a month: report

By IBT Staff Reporter01/07/09 AT 8:14 AM

Investors affected by Bernard Madoff's $50 billion alleged fraud are likely to start recovering their money in the next month if the cash isn't difficult to trace, said the President of investor protection fund, Securities Investor Protection Corp President Stephen Harbeck said in an interview with Bloomberg.

Harbeck said that the first payouts from the protection fund will occur in a month or two but other investors might wait for months since the Madoff case is of a completely different order of magnitude.

Harbeck referred to it as unscrambling an egg,

He didn't say if SIPC will need more money from the Treasury or Congress to fulfill the payments or if solving them will end with the group's funds, Bloomberg reported.

Bernard Madoff, 70, was arrested over accusations of securities fraud on Dec. 11 in New York City. He allegedly told his sons his investment fund paid investors with the money from newer investors, which included banks, hedge funds, charities and rich families. He is now under house arrest.